Visionary Holdings Inc. (GV) research, news, and more from GeoInvesting

Company description

Wed, 30 Jul 2008 04:00:00 GMT

Goldfield is a leading provider of electrical construction and maintenance services in the energy infrastructure industry throughout much of the United States. The company specializes in installing and maintaining electrical transmission lines for a wide range of electric utilities. Goldfield is also involved, to a much lesser extent, in the acquisition, development, management and disposition of land and improved properties on Florida's east coast.

Research

Thu, 14 Sep 2017 15:48:56 GMT

GV (5.95) provided an update on storm restoration efforts in Florida. On August 30, 2017 we highlighted GBR GV as a provider of electrical construction services primarily serving electric utilities and industrial customers in the Texas and Florida areas. Shares were trading at $4.40 at that time and have since risen sharply to $5.95 on the heels of Hurricanes Harvey and Irma. Today, GV stated:

“substantially all of its power line construction personnel and related equipment from its Florida and Texas operations are committed to storm restoration work in Florida as a result of Hurricane Irma.

Although the Company is providing restoration services to most of the major utilities in Florida affected by the hurricane, it is too early to determine the duration of the Company’s participation in the restoration efforts or to assess the financial impact on its operations. The utilities for which Goldfield is providing these services are still assessing their storm damage. Additionally, these utility customers can discontinue the Company’s involvement in the recovery work at any time. As soon as they are released from such restoration service, the Company’s crews will return to previously awarded projects.”

Understanding the amount of revenue that is being delayed to accommodate the relief efforts will be the key to deciphering if this will result in a net gain or net reduction in the near term. Long term industry trends are positive.

Research

Thu, 07 Sep 2017 17:20:26 GMT

GV ($5.40) - GV (electrical construction) shares continue to push higher as investors have speculated that the Company may see an increase in work from the power outages caused by Hurricane Harvey, and now possibly from Hurricane Irma which may be headed for parts of Florida, where GV is headquartered. GV was trading at $4.40 when we added the company to our screen on August 30, 2017.

Edit 9/7/2017 - GV has also been included in our Infrastructure Overhaul Screen

Research

Tue, 31 Mar 2015 04:00:00 GMT

Taking Our Lumps on Small Speculative Earnings Bet on Goldfield (GV)

$GV ($2.59; marked down 25%) - On March 24, 2015, we disclosed that we “...decided to initiate a small speculative long position in GV ahead of its Q4 2014 financial release.” We also stated, “our hesitation to aggressively go long GV is due to ongoing caveats to the story...”

Yesterday after the close, GV reported its Q4 2014 results. Our bullish prediction that GV would report strong sales came to fruition, but so did the caveat of low visibility of margins.

While revenue growth for the quarter was strong, up 24.7% compared to the prior year, GV reported a loss of $0.06 vs EPS of $0.06 in the prior year. As of December 31, 2014 sales almost quadrupled to $275.0 million compared to $74.5 million as of December 31, 2013, and the Texas projects are slated to be completed in May 2015. The losses stem from issues with two large projects in Texas. Here are some quotes from management:

“These losses were attributable to a combination of factors, including start-up delays in material procurement and adverse weather conditions which adversely affected the allocation of labor and equipment resources. We have made management changes in our Texas operations designed to improve project management.”

On the positive side, backlog remains strong and the costs that impacted Q4 EPS appear to be a one time hit. Thus, although we will likely look to take our loss and move on to other opportunities, we may look to buy GV again if we determine that the market has overreacted to the negative EPS results. However, we reiterate that caveats of owning GV, such as our unsuccessful attempts to interview management and little visibility into margins. These caveats will continue to temper the size of any future bullish bet we may initiate.

Research

Wed, 25 Mar 2015 04:00:00 GMT

Initiated Small Speculative Position on GV Ahead of Earnings

$GV (2.75) - The Goldfield Corporation is engaged in the electrical construction operation in the United States.

Yesterday, March 24, 2015, we disclosed that “we have decided to initiate a small speculative long position in GV ahead of its Q4 2014 financial release.” We also stated :

“Although we are still in the process of breaking down GV, our quick analysis of backlog trends indicates that the company’s core backlog minus STEC is healthy and is being replaced with new projects. We plan to provide more details shortly.”

What follows is a summary of GV’s recent backlog and margin trends since it was awarded a large project in Texas (STEC/CREZ) in February of 2012. This backlog analysis is important since investors questioned the ability of GV to replace the larger than normal STEC contract, potentially sending record revenues lower to more historical levels. Thus, we wanted to determine if GV’s core backlog, excluding STEC, was stable or growing as STEC backlog diminished.

Skeptics also questioned GV’s ability to sustain higher than industry margins that the STEC contract brought to the company.

The good news: GV’s core backlog is showing signs of growth , partly helped by the acquisition of C and C Power Line it closed in January 2014. Specifically, core backlog has risen from $10 million at the end of March 31, 2012 to $41.3 million as of September 30, 2014. More importantly, it appears that 2014 revenue will reach $90 million without any STEC contribution. This is good news and at least for now can put to bed the opinion that GV would be unable to replace revenues generated from STEC. A good deal of GV ability to maintain elevated revenue levels is due to the company putting a greater emphasis on filling its backlog with recurring maintenance and service work (MSA). We presume that if the company can prove that MSA will be a reliable and more predictable source of revenue that investors will reward shares with higher valuation multiples.

The not so great news: Margins have fallen well off their highs attained during the period when STEC was being worked through. Management needs to provide some color on whether it believes that MSA revenues will carry higher margins than its project revenue. Soon to be released Q4 2014 financial results should shed some light on the issue.

In the meantime we will stick with our small pre-earnings trade bet based on improving backlog trends.

Valuation scenarios:

Our next task will be to determine how to value shares of GV. Since the company has not been responsive to arrange an interview, we will have to rely on historical financials to forecast 2014 EPS. We estimate that GV will report fully taxed 2014 non-GAAP EPS of $0.09 and adjusted EBITDA of $10.4 million. This means shares are currently trading at a P/E of 29 and EV/EBITDA of 8.1. While the P/E multiple is high, the EV/EBITDA multiple is reasonable enough for multiple expansion if the company can re-establish positive growth trend.

Research

Tue, 24 Mar 2015 04:00:00 GMT

Initiating Small Speculative Position on GV Ahead of Earnings

$GV (2.75) - The Goldfield Corporation is engaged in the electrical construction operation in the United States.

We have decided to initiate a small speculative long position in GV ahead of its Q4 2014 financial release. This comes after further due diligence indicates that the company‘s core backlog picture is improving. Our hesitation to aggressively go long GV is due to ongoing caveats to the story that we are mindful of.

On March 16, 2015 wementioned :

We think a growing backlog, a more predictable revenue stream, insider buying and favorable industry trends could bring ex-GeoBargain GV back from the grave. The financial performance of Q4 2104 will give investor clues as to how successful management has been replacing contracts that had given the company a brief period of growth during 2013. We will code GV as a GeoBargain on the radar as perform our due diligence.

We also listed the following caveats:

We have difficulty speaking with management.
It is unclear what margins the backlog carries.
Large projects can still lead to lumpiness in quarterly financial performance.
Breaking out current backlog would not lead to meaningful growth in 2015, but it is reasonable to expect that the company can generate revenues in addition to the backlog throughout the year.
GeoTeam is working on breaking down (1) various valuation scenarios and (2) core backlog growth minus a one time larger project (STEC).

Although we are still in the process of breaking down GV, our quick analysis of backlog trends indicates that the company’s core backlog minus STEC is healthy and is being replaced with new projects. We plan to provide more details shortly.

Research

Mon, 16 Mar 2015 04:00:00 GMT

Goldfield Corp (GV) is back on GeoInvesting's radar since the company's revenue picture could be about to improve. Those familiar with our coverage of GV know that on On May 11, 2012, GeoInvesting coded Goldfield (GV) as a GeoBargain at $1.51. On June 7, 2012 we released a bullish article, “Goldfield: A Four-Bagger In The Making”. At that time we speculated that shares would rise due to a burgeoning backlog, stemming from a large Texas infrastructure project (STEC) the company had been awarded. We were also bullish based on one of GV’s directors buying large amounts of stock in the open market. The stock reached a high of $5.67 on March 25, 2013, after reporting a strong string of quarterly sales and EPS numbers.

However, shares eventually reversed most of their gains when it became known that the company would not be awarded further STEC contracts. We also became frustrated with the company’s lack of communication with our team and unwillingness to adopt suggestions we outlined for the management team to do a better job in educating investors about its business.

Growing Backlog, Predictable Revenue Stream, Insider Buying

Recently, Goldfield Corp has been experiencing growing backlog, a more predictable revenue stream, insider buying and favorable industry trends, a combination of which we feel could bring ex-GeoBargain GV back from the grave. The financial performance of Q4 2104 will give investors clues as to how successful management has been in replacing contracts that had given the company a brief period of growth during 2013. We will code GV as a GeoBargain on the radar as we perform our due diligence.

While we have still had little success in reaching management, it is worth noting the following positive factors, which have led us to not totally abandon actively tracking GV:

Goldfield Corp still operates in an industry that will experience positive trends for years to come, specifically the need for providers of energy (utilities) to upgrade outdated infrastructure and adopt clean energy technology.
The company completed a key acquisition (C and C Power) in January 2014 which added a new source of revenue and exposure to new geographic regions that will also help the company to replace the revenue it has lost from STEC.
Core revenue (not including STEC ) appears to be growing at a brisk pace.
The company is placing more emphasis on filling its backlog with longer duration, more predictable, maintenance and service work. This could lead to an expansion of valuation multiples.
Backlog of $87 million that GV believes will fill in the next 12 months already approximately matches revenue the company will probably report for 2014 (numbers are due soon).
After reporting unimpressive growth in 3 of the last 4 quarters it appears that GV could be in a position to grow sales again, possibly reflected in Q4 2014 results.
CEO John Scottie recently purchased a large block of stock in the open market.

Commentary for Q3 2014 financial release :

“As previously announced, the Company has been focusing on developing and growing electrical construction services under multi-year Master Service Agreements (“MSAs”), which provide for more consistent workload and improved operating efficiencies. This effort has scored significant success in the second and third quarters of 2014. Total MSA backlog grew 392% to approximately $246 million as of September 30, 2014, from $50 million at March 31, 2014. The $246 million represents total revenue estimated over the life of the MSAs, of which about $48 million are estimated to be realized within 12-months. Because of the recent signing of these MSAs and the necessary delay in the start of specific construction projects, the new MSAs did not, in large part, impact revenue for the three and nine month periods ended September 30, 2014.

In addition to amounts reflected under MSAs, project-specific firm contracts to be completed within 12 months grew 78% to approximately $40 million as of September 30, 2014, from approximately $22 million as of September 30, 2013.

Of the total $287 million backlog as of September 30, 2014, we expect approximately $87 million (31%) to be completed within the next 12 months.”

John H. Sottile, President and Chief Executive Officer of Goldfield said,

“The almost four-fold growth in our electrical construction MSAs during the second and third quarters demonstrates the strength of our electrical construction operation. At September 30th, anticipated 12-month revenue from MSAs stood at about $48 million - up from about $13 million a year ago. We expect that these new MSAs will begin to have a significant impact on our operating results beginning the current quarter. Future results should also be favorably impacted by the strong 78% growth in our project specific firm contracts, with anticipated 12-month revenue from such contracts increasing to about $40 million from about $22 million a year ago.”

Caveats:

We have difficulty speaking with management.
It is unclear what margins the backlog carries.
Large projects can still lead to lumpiness in quarterly financial performance.
Breaking out current backlog would not lead to meaningful growth in 2015, but it is reasonable to expect that the company can generate revenues in addition to the backlog throughout the year.
GeoTeam is working on breaking down (1) various valuation scenarios and (2) core backlog growth minus STEC.

Reasons For Tracking

Mon, 16 Mar 2015 04:00:00 GMT

Growing Backlog, Predictable Revenue Stream, Insider Buying

While we have still had little success in reaching management, it is worth noting the following positive factors, which have led us to not totally abandon actively tracking GV:

Goldfield Corp still operates in an industry that will experience positive trends for years to come, specifically the need for providers of energy (utilities) to upgrade outdated infrastructure and adopt clean energy technology.
The company completed a key acquisition (C and C Power) in January 2014 which added a new source of revenue and exposure to new geographic regions that will also help the company to replace the revenue it has lost from STEC.
Core revenue (not including STEC ) appears to be growing at a brisk pace.
The company is placing more emphasis on filling its backlog with longer duration, more predictable, maintenance and service work. This could lead to an expansion of valuation multiples.
Backlog of $87 million that GV believes will fill in the next 12 months already approximately matches revenue the company will probably report for 2014 (numbers are due soon).
After reporting unimpressive growth in 3 of the last 4 quarters it appears that GV could be in a position to grow sales again, possibly reflected in Q4 2014 results.
CEO John Scottie recently purchased a large block of stock in the open market.

Commentary for Q3 2014 financial release :

“As previously announced, the Company has been focusing on developing and growing electrical construction services under multi-year Master Service Agreements (“MSAs”), which provide for more consistent workload and improved operating efficiencies. This effort has scored significant success in the second and third quarters of 2014. Total MSA backlog grew 392% to approximately $246 million as of September 30, 2014, from $50 million at March 31, 2014. The $246 million represents total revenue estimated over the life of the MSAs, of which about $48 million are estimated to be realized within 12-months. Because of the recent signing of these MSAs and the necessary delay in the start of specific construction projects, the new MSAs did not, in large part, impact revenue for the three and nine month periods ended September 30, 2014.

Of the total $287 million backlog as of September 30, 2014, we expect approximately $87 million (31%) to be completed within the next 12 months.”

John H. Sottile, President and Chief Executive Officer of Goldfield said,

“The almost four-fold growth in our electrical construction MSAs during the second and third quarters demonstrates the strength of our electrical construction operation. At September 30th, anticipated 12-month revenue from MSAs stood at about $48 million - up from about $13 million a year ago. We expect that these new MSAs will begin to have a significant impact on our operating results beginning the current quarter. Future results should also be favorably impacted by the strong 78% growth in our project specific firm contracts, with anticipated 12-month revenue from such contracts increasing to about $40 million from about $22 million a year ago.”

Caveats:

We have difficulty speaking with management.
It is unclear what margins the backlog carries.
Large projects can still lead to lumpiness in quarterly financial performance.
Breaking out current backlog would not lead to meaningful growth in 2015, but it is reasonable to expect that the company can generate revenues in addition to the backlog throughout the year.
GeoTeam is working on breaking down (1) various valuation scenarios and (2) core backlog growth minus STEC.

Comments & Business Outlook

Thu, 14 Aug 2014 04:00:00 GMT

Second Quarter 2014 Financial Results:

Revenue was 25.3 million, an increase of 23% from 20.6 million in the same quarter last year.
Non-GAAP EPS is $0.01 vs $0.00 in prior year.
Current backlog reached 300 million.

Backlog and Management Commentary

As previously announced the Company has been focusing on developing and growing electrical construction services under multi-year Master Service Agreements ("MSAs"), which provide for more consistent work load and improved operating efficiencies. This effort has scored significant success in the second quarter. Total MSA backlog grew five-fold to approximately $190 million as of June 30, 2014, from $31 million as of June 30, 2013. If MSA contracts awarded since July 1, 2014 were included as of June 30, 2014, the total estimated MSA backlog would be approximately $266 million.

In addition, project-specific firm contracts to be completed within 12 months grew to approximately $34 million as of June 30, 2014, from approximately $25 million as of June 30, 2013. As of June 30, 2014 our total backlog was $224 million (excluding $76 million awarded since July 1, 2014), compared to $56 million as of June 30, 2013. Of the $224 million backlog as of June 30, 2014, $34 million is believed to be firm under existing project-specific fixed-price and maintenance contracts and the balance represents the estimated value of future services under our existing MSAs. We expect approximately $60 million (27%) of this backlog to be completed within the next 12 months.

Our backlog represents the uncompleted portion of services to be performed under existing project-specific fixed-price and maintenance contracts and the estimated value of future services that we expect to provide under our existing MSAs. The existing MSAs have initial terms ranging from one year to four years, and some provide for additional renewals at the option of the customer. Our total MSA calculation assumes exercise of the renewal options. Revenue from assumed exercise of renewal options represents 47% of our total estimated MSA backlog as of June 30, 2014.

The estimated amount of backlog for work under MSAs is calculated by using recurring historical trends in current MSAs and projected customer needs based upon ongoing communications with the customer. The size and amount of projects we may be awarded under MSAs cannot be determined with certainty and actual future revenue from such contracts may vary substantially from our current estimates.

John H. Sottile, President and Chief Executive Officer of Goldfield said, "The dramatic increase in our electrical construction MSAs attests to the strength of our operations and the success of efforts to grow that business." "This portends well for our future," Mr. Sottile added.

Comments & Business Outlook

Thu, 15 May 2014 04:00:00 GMT

First Quarter 2014 Results

Revenue for the three months ended March 31, 2014, was $21.9 million compared to $22.5 million in the comparable prior year period.
Net income for the three months ended March 31, 2014, was $335,000, or $0.01 per share, compared to net income of $1.8 million, or $0.07 per share, in the comparable prior year period.

Backlog

As of March 31, 2014 our total backlog was $73.1 million, compared to $60.2 million as of March 31, 2013. We expect approximately 49.3% of this backlog to be completed during 2014.

Our total backlog as of March 31, 2013, included $15.1 million (25.0%) from the completed STEC project. Excluding the STEC project, our backlog increased 62.0% from March 31, 2013 to March 31, 2014, growing from $45.2 million to $73.1 million.

Our backlog represents the uncompleted portion of services to be performed under existing project-specific fixed-price contracts and the estimated value of future services that we expect to provide under our existing master service agreements ("MSAs"). As of March 31, 2014, MSAs had grown to 68.3% of our backlog from 52.5% as of March 31, 2013.

John H. Sottile, President and Chief Executive Officer of Goldfield said, "We are pleased with the acquisition of C&C, a full service electrical contractor with a unionized workforce. We believe C&C will provide a platform for future growth. We are also encouraged by the growth of our backlog despite the completion of the large STEC project -- and the increase represented by MSAs. We intend to continue to focus on developing MSA business -- which generally provides longer term contracts and operating efficiencies."

Comments & Business Outlook

Thu, 27 Mar 2014 04:00:00 GMT

Fourth Quarter 2013 Results

Revenue for the three months ended December 31, 2013, decreased 11.4% to $22.8 million from $25.7 million in the comparable prior year period.
Income from continuing operations before tax for the three months ended December 31, 2013, decreased 57.9% to $2.6 million from $6.2 million in the same period in 2012.
Net income for the three months ended December 31, 2013 was $1.4 million, or $0.06 per share, compared to net income of $4.2 million, or $0.17 per share, in the comparable prior year period.
Non GAAP EPS for fourth quarter 2013 was $0.08 vs $0.17

Backlog

As of December 31, 2013 our total backlog was $74.5 million compared to $76.4 million as of December 31, 2012. Of our total backlog as of December 31, 2013, we expect approximately 51.3% to be completed during 2014.

John H. Sottile, President and Chief Executive Officer of Goldfield said, "We are pleased with the strength of our revenue in 2013 despite the completion of the STEC project - - and the significant increase in the non-STEC backlog from year to year. We are, of course, disappointed that unanticipated special expenses adversely affected our 2013 income." Mr. Sottile further noted that, "The acquisition of C and C Power Line, Inc., completed on January 3, 2014, should provide another platform for our future growth."

Deal Flow

Wed, 05 Feb 2014 05:00:00 GMT

Item 1.01. Entry into a Material Definitive Agreement.

On January 31, 2014, The Goldfield Corporation (the “Company”), the Company’s wholly owned subsidiaries, collectively, (the “Debtors”), and Branch Banking and Trust Company (“BB&T”) entered into a Master Loan Agreement (the “Master Loan Agreement”). The Master Loan Agreement replaces all previous BB&T loan agreements. The Master Loan Agreement restates the same terms and conditions as those set forth in the previous Master Loan Agreement originally entered into on December 16, 2013, and as described in the Company's Form 8-K filed on December 18, 2013, which description is incorporated herein by reference, except for (i) the addition of the wholly owned subsidiary C and C Power Line Inc. (“C&C”) as a party to the Master Loan Agreement, and (ii) the addition of a $10 million equipment loan (the “$10.0 Million Equipment Loan”) and a $3.5 million acquisition loan (the “$3.5 Million Acquisition Loan”). It is anticipated that all the borrowings under the $10.0 Million Equipment Loan will be taken down over the next twenty-four (24) months, as permitted under the terms of the loan. The $3.5 Million Acquisition Loan was funded in its entirety on February 4, 2014.

The $10.0 Million Equipment Loan is for purchases of equipment and vehicles to be owned by the Company and its subsidiaries and any borrowings thereunder will mature on July 28, 2020. Accrued interest on any borrowings thereunder is payable monthly commencing on February 28, 2014, (or such later date as any borrowings occur) until January 28, 2016. Commencing on February 28, 2016, payments of principal in the amount of 1/54^th of the principal balance outstanding as of January 28, 2016, plus accrued interest will be made each month thereafter, with one final payment of all remaining principal and accrued interest due on July 28, 2020.

The $3.5 Million Acquisition Loan represented the partial financing of the acquisition of C&C and matures on January 28, 2019. Principal payments of $58,350.00, plus accrued interest will be made commencing on February 28, 2014, and monthly thereafter through December 28, 2018, with one final payment of all remaining principal and accrued interest due on January 28, 2019.

Both the $10.0 Million Equipment Loan and the $3.5 Million Acquisition Loan bear interest at a rate per annum equal to One Month LIBOR (as defined in the Ancillary Loan Documents) plus 2.00%, which will be adjusted monthly and subject to a maximum rate of 24.00%, provided however, that upon receipt in 2014 of the Company’s Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission, pricing will be based on the following table:



Leverage Ratio	Applicable Margin for LIBOR Loans and Letter of Credit Fees
< 1.0x ≥ 1.0x but < 1.5x ≥ 1.5x but < 2.0x ≥ 2.0x but < 2.5x ≥ 2.5x but < 3.0x	175.0 bps 200.0 bps 225.0 bps 250.0 bps 275.0 bps

“Leverage ratio” means total liability to tangible net worth. Pricing will be adjusted on a quarterly basis based on the table above and the Company’s quarterly financial reports with any interest rate changes taking effect in the month following receipt of the quarterly financial reports. These borrowings are guaranteed by the Debtors.

The obligations under the new $10.0 Million Equipment Loan and the $3.5 Million Acquisition Loan are secured by a continuing security interest in the personal property of the Company and the Debtors, as more fully described in the Company's Form 8-K filed on December 18, 2013, which description is incorporated herein by reference.

The foregoing descriptions of the Master Loan Agreement, the two new loans and the Ancillary Loan Documents do not purport to summarize all of the provisions of these documents and are qualified in their entirety by reference to the loan documents filed herewith as Exhibits 10-1 through 10-9 to this Current Report on Form 8-K, with each of the foregoing incorporated herein by reference.


*Item 2.03.*	*Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.*

The information set forth, and the exhibits identified, in Item 1.01 are incorporated herein by reference.

Acquisition Activity

Fri, 03 Jan 2014 05:00:00 GMT

MELBOURNE, Fla., Jan. 2, 2014 /PRNewswire/ -- The Goldfield Corporation (NYSE MKT: GV) today announced that its wholly owned subsidiary, Power Corporation of America, signed a Stock Purchase Agreement to purchase the stock of C and C Power Line, Inc., a privately-held union electrical construction company headquartered in Jacksonville, Florida. Goldfield previously announced the signing of a Letter of Intent to acquire C and C on August 26, 2013. The transaction is expected to close in early January, subject to satisfaction of customary closing conditions.

C and C has been involved in the construction of electrical transmission lines in Florida since 1989, with annual revenue of approximately $15 million in 2012. The purchase price for all the stock of C and C is $7,250,000 in cash, subject to certain adjustments as provided in the Stock Purchase Agreement. The purchase price will be partially funded from borrowings under our recently expanded bank credit line.

John H. Sottile, President of Goldfield, said that the acquisition of C and C will open opportunities for Goldfield to expand its revenue base and geographic footprint into areas previously not available for the Company.

Mr. Sottile added, "The existing operating management of C and C will strengthen our electrical construction capabilities, promoting the growth of future operations."

Comments & Business Outlook

Wed, 13 Nov 2013 05:00:00 GMT

Third Quarter 2013 Results

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.
The company reported EPS of $0.05, compared to $0.10 in the comparable prior year period.

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.

Notable Share Transactions

Thu, 19 Sep 2013 04:00:00 GMT

8-K filed on September 18, 2013

On September 12, 2013, the Board of Directors of The Goldfield Corporation (the “Company”) approved an extension of Goldfield’s stock repurchase plan, pursuant to which the plan has been extended until September 30, 2014. As of September 12, 2013, the Company had repurchased 2,345,060 shares pursuant to the plan, at an average cost of $0.55 per share, and is authorized to purchase an additional 1,154,940 shares pursuant to the plan. As of September 12, 2013, Goldfield had 25,451,354 shares outstanding.

Acquisition Activity

Mon, 26 Aug 2013 04:00:00 GMT

MELBOURNE, Fla., Aug. 26, 2013 /PRNewswire/ -- The Goldfield Corporation (NYSE MKT: GV) today announced that its wholly owned subsidiary, Power Corporation of America, has signed a Term Sheet with respect to the purchase of C and C Power Line, Inc., a privately-held electrical construction company headquartered in Jacksonville, Florida. C and C has been involved in the construction of electrical transmission lines in Florida since 1989, with annual revenue of approximately $15 million in 2012. The Term Sheet does not obligate the parties to proceed with the transaction.

The contemplated purchase price for all the stock of C and C will be approximately $7 million.

John H. Sottile, President of Goldfield, said that C and C is a well respected union contractor with a fine safety record. "The acquisition of C and C will strengthen our electrical construction platform and facilitate expansion of these operations," Mr. Sottile added.

Consummation of the purchase is subject to, among other conditions, completion of due diligence and execution of a definitive purchase agreement. The purchase is expected to be consummated in the fourth quarter. There can be no assurance that the acquisition will be completed.

Comments & Business Outlook

Wed, 14 Aug 2013 04:00:00 GMT

Second Quarter 2013 Results

Revenue for the three months ended June 30, 2013 increased by $2.1 million to $20.6 million from $18.5 million in the comparable prior year period.
Income from continuing operations before tax decreased 98% or $3.9 million to $97,000 for the three months ended June 30, 2013, from $4.0 million in the same period in 2012. This decrease almost entirely resulted from the aforementioned $3.7 million charges on the STEC project.

John H. Sottile, President and Chief Executive Officer of Goldfield said, "The business and prospects of our electrical construction operation remain strong, notwithstanding the income decline caused by unanticipated factors beyond our control --- extraordinary weather conditions and an environmental condition at a property sold over half a century ago. The successful and on-time completion of the largest construction project in the Company's history attest to the strength and competence of our electrical construction operation," Mr. Sottile added.

Comments & Business Outlook

Thu, 30 May 2013 04:00:00 GMT

Commentary by CEO John Sottile at Annual Meeting of Shareholders

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.

A highlight of 2012 was the selection of Southeast Power to construct a 110 mile 345kV transmission line as part of a Competitive Renewable Energy Zone project in Texas. This project, scheduled to be energized by the end of August, contributed about 34% of our revenue in 2012 and will impact favorably 2013 results. But, the CREZ project was hardly the whole story for 2012. Most significantly, our revenue from other projects increased in 2012 by 68% to $53.2 million from $31.7 million in 2011. Given the continuing strong demand for our services, we believe that we will meet the challenge of replacing the work from the CREZ project.

Southeast Power's excellent reputation in the industry, together with our expansion, has enabled us to attract strong new leadership. John Davis took the helm at Southeast Power as President on January 1 this year. Just last month, John White , formerly Senior Vice President of one of the country's largest electrical construction companies, joined the Southeast Power team with responsibility for new business development. I could not be more pleased with the efforts of Mr. Davis and Mr. White - both on operational and new business development fronts.

A few comments about first quarter 2013 results: Revenue increased 27% to $22.5 million from $17.7 million in first quarter 2012. Operating income grew 8% to $3.0 million from $2.7 million during the same period last year. First quarter this year operating income was negatively impacted by unanticipated delays on the STEC project. We believe the conditions which caused such delays have been rectified. Backlog at March 31, 2013 declined largely because the March 31, 2012 backlog included the entire STEC project of $52 million. Backlog is not necessarily a reliable indicator of future revenue and is volatile depending on the projects under construction at any point in time, many of which are short term. Almost daily we are bidding on new projects, some large and some small. Although we cannot quantify the size or duration of future projects, we are currently seeing opportunities for significant jobs from existing and new customers, some of which should come to fruition later this year.

Industry prospects appear bright. A recent report by a prominent Industry analyst noted that 77% of the shareholder-owned electric utilities surveyed are projecting increased spending on electric transmission and distribution networks over the next two years. Transmission continues to benefit from regulatory drivers such as FERC & NERC reliability standards, growth in renewables, and further migration from coal to natural gas power plants. This report supports the strong demand we are seeing for our services.

In short, Goldfield moved to a new level in 2012. With the strong team we have assembled at Southeast Power and the robust industry environment, I am optimistic that we will continue to move forward.

Comments & Business Outlook

Thu, 09 May 2013 04:00:00 GMT

First Quarter 2013 Results

Revenue for the three months ended March 31, 2013 increased 27.0% to $22.5 million from $17.7 million in the comparable prior year period.
Net income for the three months ended March 31, 2013 was $1.8 million, or $0.07 per share, compared to net income of $2.7 million, or $0.10 per share, in the comparable prior year period. Net income in the first quarter of 2013 included income tax expense of $1.0 million (36.8%), compared to $51,000 (1.9%) in the first quarter of 2012. The income tax rate for the three months ended March 31, 2012 was lower as a result of the Company's ability to utilize net operating loss carryovers and tax credits.

John H. Sottile , President and Chief Executive Officer of Goldfield said, "With the strong team we have now assembled at Southeast Power and the robust industry environment, we believe we are well positioned to expand our customer base and to take advantage of future opportunities. We are seeing significant prospects developing from both existing and new customers, some of which we believe will likely materialize later in the year," Mr. Sottile added.

Shareholder Letters

Mon, 29 Apr 2013 04:00:00 GMT

Today, on it's website, GV published a letter to it shareholders:

TO OUR SHAREHOLDERS

2012 represented a year of record results in Goldfield’s 106 year history. Just as important – we built a firm foundation for our continued future growth.

In 2012, net income grew to $12 million ($0.47 per share) from $874 thousand ($0.03 per share) in 2011. Revenue more than doubled to $81.6 million in 2012 from $32.8 million in 2011.

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 subsidiary, Southeast Power, in a broader service area. We are now seeing the preliminary impact of our strategy to move beyond our historic Florida base by expanding our operations into Texas, the Carolinas and Virginia.

Southeast Power’s fine reputation in the industry, together with our expansion, has enabled us to attract experienced and highly regarded new leadership. John Davis, former Chief Operating Officer of Southeast Power, took the helm as President on January 1, 2013. John E. White, formerly Senior Vice President of one of the country’s largest electrical construction companies, recently joined the Southeast Power team with responsibility for new business development. I have every confidence that we have assembled a strong team capable of leading Southeast Power to continued success.

A highlight of 2012 was the selection of Southeast Power to construct a 110 mile 345kV transmission line as part of a Competitive Renewable Energy Zone (“CREZ”) project in Texas. This project, scheduled for completion this August, contributed about 34% of our revenue in 2012 and is expected to impact favorably 2013 results. But this is hardly the whole story. Most significantly, our revenue from other projects increased in 2012 by 68% to $53.2 million, from $31.7 million in 2011. Given the continuing strong demand for our services, we believe that we will meet the challenge of replacing the work from the CREZ project. In short, we enter 2013 with confidence in our business plan.

In 2012 we invested $16.8 million in capital equipment to support our expanded electrical construction operations, enhance productivity and improve safety. Notwithstanding this large commitment, Goldfield’s financial position today is stronger than ever.

With the strong team we have assembled and the robust industry environment, I am confident we are well positioned today to take advantage of opportunities to build on our record growth. I appreciate the support of so many Goldfield shareholders over the years and am particularly grateful to Goldfield’s employees who worked so hard and effectively in 2012.

John H. Sottile

President and Chief Executive Officer

April 29, 2013

Deal Flow

Thu, 25 Apr 2013 04:00:00 GMT

On April 22, 2013, The Goldfield Corporation (the "Company"), the Company's wholly owned subsidiaries, Southeast Power Corporation ("Southeast Power"), Bayswater Development Corporation ("Bayswater"), and Pineapple House of Brevard, Inc. ("Pineapple House"), entered into a Master Loan Agreement (the "Master Loan Agreement") with Branch Banking & Trust Company ("BB&T"). The Master Loan Agreement replaces all previous BB&T loan agreements and eliminates the need to restate a loan agreement each time a new note is executed or an existing loan is renewed.

The Master Loan Agreement includes similar terms and conditions as those set forth in the previous loan agreements. The Master Loan Agreement contains the same Tangible Net Worth covenant requirement of $18,000,000 and the same Debt to Tangible Net Worth ratio requirement of 2.25:1.0.

New Southeast Power Equipment Loans

On April 22, 2013, Southeast Power entered into additional financing for purchases of equipment and vehicles owned by Southeast Power, through increased borrowings with BB&T totaling $6.5 million. $1.5 million of such borrowings mature on April 22, 2017 and $5.0 million mature on April 22, 2018. These borrowings, as well as the previously existing BB&T equipment loans, are guaranteed by the Company, Pineapple House, and Bayswater.

The new equipment loans, as well as the previously existing BB&T equipment loans, and the Working Capital Loan, bear interest at a rate per annum equal to One Month LIBOR (as defined in the loan documents) plus 2.50%, which will be adjusted monthly. In addition, the rate of interest added to the One Month LIBOR will increase from 2.50% to 2.90% if the Debt to Tangible Net Worth ratio exceeds 1.6:1.0.

Accrued interest for the new $1.5 million equipment loan is payable monthly commencing on May 22, 2013, and continuing on the same day of each month thereafter, until October 22, 2013. Commencing on November 22, 2013, payments of principal in the amount of $35,714.29 plus accrued interest will be made each month thereafter, with one final payment of all remaining principal and accrued interest due on April 22, 2017.

Accrued interest for the new $5.0 million equipment loan is payable monthly commencing on May 22, 2013, and continuing on the same day of each month thereafter, until October 22, 2013. Commencing on November 22, 2013, payments of principal in the amount of $92,592.59 plus accrued interest will be made each month thereafter, with one final payment of all remaining principal and accrued interest due on April 22, 2018.

The obligations of Southeast Power pursuant to the new equipment loans, as well as the previously existing BB&T equipment loans, are secured by the grant of a continuing security interest in the following now owned and hereafter acquired and wherever located personal property of Southeast Power: (i) machinery and equipment, including all accessions thereto, and all manufacturers' warranties, parts and tools therefore; (ii) all vehicles; and (iii) to the extent not listed in (i) and (ii) all proceeds (cash and non-cash) and products of the foregoing.

The equipment loans include covenants and agreements that are customary for loans of this type, including provisions which accelerate the repayment of outstanding amounts if an event of default occurs.

Investor Alert

Wed, 03 Apr 2013 04:00:00 GMT

Yesterday, the GeoTeam published its follow-up report on GV explaining why we disagreed with recent commentary by another author, as well as explain our rationale for higher valuation. Our article starts:

On June 7, 2012 the GeoTeam published an article on Goldfield (GV) titled, “Goldfield: A ‘Four-Bagger’ In The Making”. At the time of our original report the stock was trading at $1.60. Within our article we made mention of a GV Director, Jeffrey Eberwein, who had purchased 115,000 shares of the company’s stock in the open market. He has since added another 235,000 shares. On March 25, 2013, less than nine months after our initial write-up, the stock traded at a 52-week high of $5.67, providing investors who acted on our article with a 254% return.

Please see our entire report first viewed by our Premium Members here.

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Deal Flow

Mon, 24 Sep 2012 04:00:00 GMT

Southeast Power $4.25 Million Loan Agreement

On September 17, 2012, The Goldfield Corporation (the “Company”), the Company’s wholly owned subsidiaries, Southeast Power Corporation (“Southeast Power”), Bayswater Development Corporation (“Bayswater”), and Pineapple House of Brevard, Inc. (“Pineapple House”), and Branch Banking and Trust Company (“BB&T”) entered into a $4,250,000 Loan Agreement (the “Southeast Power $4.25 Million Loan Agreement”) and related ancillary agreements, to provide financing for purchases of equipment and vehicles to be owned by Southeast Power. The Company, Pineapple House, and Bayswater agreed to guarantee Southeast Power’s obligations under any and all notes, draft, debts, obligations, and liabilities or agreements evidencing any such indebtedness, obligation, or liability including all renewals, extensions and modifications thereof. The Southeast Power $4.25 Million Loan Agreement will mature, and all amounts due to BB&T under the loan and the related Promissory Note will be due and payable in full on September 19, 2016. Accrued interest is payable monthly commencing on October 19, 2012 and continuing on the same day of each calendar period thereafter, until February 19, 2013. Subsequently, commencing March 19, 2013, payments of principal in the amount of $98,000 plus accrued interest will be made each month through and including August 19, 2016.

The obligations of Southeast Power pursuant to the Southeast Power $4.25 Million Loan Agreement and the Promissory Note are secured by the grant of a continuing security interest in all now owned and hereafter acquired and wherever located personal property as follows: (i) machinery and equipment, including all accessions thereto, all manufacturers’ warranties, parts and tools therefore; (ii) all vehicles owned by Southeast Power as more specifically described in the Security Agreement between Southeast Power and BB&T dated September 17, 2012; and (iii) all proceeds (cash and non-cash) and products of the foregoing.

The Southeast Power $4.25 Million Loan Agreement and the related Promissory Note include covenants and agreements that are customary for loan agreements and promissory notes of this type, including provisions which accelerate the repayment of outstanding amounts in the event of a material default under the Promissory Note.

The foregoing description of the Southeast Power $4.25 Million Loan Agreement does not purport to summarize all of the provisions of this document and is qualified in its entirety by reference to the Promissory Note, the Addendum to the Promissory Note, the Loan Agreement, the Security Agreement and the Guaranty, filed as Exhibit 10-1, Exhibit 10-2, Exhibit 10-3, Exhibit 10-4 and Exhibit 10-5, respectively, to this Current Report on Form 8-K, with each of the foregoing incorporated herein by reference.

Modification of Working Capital Loan Agreement

On September 17, 2012, the Company, Southeast Power, Bayswater, and Pineapple House, and BB&T, entered into an Addendum to the Loan Agreement to effect a modification to the loan agreement entered into by the parties on August 26, 2005 and either modified or renewed on March 14, 2006, August 26, 2006, September 27, 2007, November 25, 2008, December 29, 2009, February 22, 2011, January 4, 2012, April 17, 2012 and July 16, 2012 (the “Working Capital Loan Agreement”), which is due and payable in full on January 16, 2013. The Working Capital Loan Agreement provided the Company with a line of credit to be used for working capital, capital expenditures and general corporate purposes. The maximum principal amount of the Working Capital Loan Agreement is $5.0 million. Borrowings outstanding under the Working Capital Loan Agreement were $800,000 as of September 17, 2012.

Notable Share Transactions

Mon, 27 Aug 2012 04:00:00 GMT

GV Director, Eberwein Jeffrey E. buys 44,610 shares of GV through various open market transactions.

Comments & Business Outlook

Mon, 13 Aug 2012 04:00:00 GMT

Second Quarter 2012 Results

Revenue for the three months ended June 30, 2012, more than doubled to $18.5 million from $7.5 million in the comparable prior year period.
The Company's operating income for the three months ended June 30, 2012 jumped to $4.0 million, compared to $80,000 for the same period in 2011.
Net income for the three months ended June 30, 2012 was $2.4 million, or $0.10 per share, compared to $32,000, or $0.00 per share, in the comparable prior year period.

John H. Sottile, Goldfield's President and Chief Executive Officer stated, "We are pleased with the continued broad-based growth of our electrical construction business. With our electrical construction backlog at June 30th reaching $60.3 million (compared to $3.4 million at this time last year), the prospects for this business remain brighter today than at any time in recent history."

Total revenue in the six months ended June 30, 2012, more than doubled to $36.2 million, an increase of $19.8 million, compared to $16.4 million in the six months ended June 30, 2011, due to the increase in electrical construction revenue. Electrical construction revenue increased to $35.6 million from $15.6 million, an increase of $20.0 million, for the six months ended June 30, 2012, when compared to the six months ended June 30, 2011. The increase in revenue was largely due to an increase in demand for our electrical construction services, primarily our transmission work, which represents approximately 96.8% of the total increase in electrical construction revenue. Our increase in transmission project revenue includes several large projects throughout Texas, Florida and the Carolinas. This increase in revenue is attributable to segment wide growth with the most dramatic increase occurring in Texas.

Deal Flow

Sat, 21 Jul 2012 04:00:00 GMT

Southeast Power Installment Sale Contract (Security Agreement)

On July 16, 2012, Southeast Power Corporation (“Southeast Power”), a wholly owned subsidiary of The Goldfield Corporation (the “Company”), and Ring Power Corporation (the “Seller”) entered into an Installment Sale Contract (Security Agreement) (the “Agreement”) and related ancillary agreements, pursuant to which Southeast Power agreed to purchase specific identified equipment units (the “Equipment”) from the Seller for a purchase price of $7.90 million, and an amendment to the Agreement (the “Amendment”). Also per the terms of the Agreement, Southeast Power agreed to pay for the entire purchase price of all Equipment plus fees and finance charges by way of forty-eight (48) installment payments of $176,534.54, aggregating to $8,473,657.92, payable to Caterpillar Financial Services Corporation (“CAT”). The first payment under the Agreement will be due and payable on August 17, 2012, and subsequent equal monthly installment payments will be due and payable until the entire indebtedness has been paid, bearing a fixed interest rate of 3.45%. In addition, on July 16, 2012, the Seller assigned to CAT its interest in and rights and remedies under the Agreement and related agreements, as well as the Seller’s security interest in the Equipment. On July 16, 2012, the Company agreed to guarantee Southeast Power’s indebtedness under the Agreement (the “Guaranty”).

Modification of Working Capital Loan Agreement On July 16, 2012, the Company, Southeast Power, and the Company’s wholly owned subsidiaries, Bayswater Development Corporation (“Bayswater”), and Pineapple House of Brevard, Inc. (“Pineapple House”), and BB&T, entered into an Addendum to Loan Agreement to modify the loan agreement entered into by the parties on August 26, 2005 and either modified or renewed on March 14, 2006, August 26, 2006, September 27, 2007, November 25, 2008, December 29, 2009, February 22, 2011, January 4, 2012, and April 17, 2012 (the “Working Capital Loan Agreement”), which is due and payable in full on January 16, 2013. The Working Capital Loan Agreement provided the Company with a line of credit to be used for working capital, capital expenditures and general corporate purposes. The maximum principal amount of the Working Capital Loan Agreement is $5.0 million. Borrowings outstanding under the Working Capital Loan Agreement were $1.8 million as of July 16, 2012.

Pursuant to the Addendum to Loan Agreement, the threshold on the Debt to Tangible Net Worth financial covenant was changed from 2.0:1.0 to 2.25:1.0. In addition, BB&T by letter dated July 16, 2012 (the “BB&T Letter”) consented to Southeast Power’s entry into the Agreement allowing Southeast Power to incur additional debt above the $500,000 debt limitation covenant in the Working Capital Loan Agreement, subject to certain conditions. All of the other terms of the Working Capital Loan Agreement and related ancillary agreements remain unchanged and are described in the Company’s Current Reports on Form 8-K filed on September 1, 2005, March 20, 2006, October 2, 2006, September 28, 2007, November 25, 2008, January 5, 2010, February 28, 2011, January 9, 2012, and April 24, 2012

Comments & Business Outlook

Fri, 11 May 2012 04:00:00 GMT

First Quarter 2012 Results

Revenue for the three months ended March 31, 2012 nearly doubled, increasing to $17.7 million from $8.9 million in the comparable prior year period.
Net income for the three months ended March 31, 2012 was $2.7 million, or $0.10 per share, compared to a net loss of $11,000, or ($0.00) net loss per share, in the comparable prior year period.

This increase in revenue was largely attributable to an increase in demand for our electrical construction services, particularly our transmission work, as a result of our expansion efforts during 2010 and 2011. As previously announced in February of 2012, the Company's electrical construction segment was awarded a $52.0 million transmission line construction contract as part of the Competitive Renewable Energy Zones ("CREZ") projects. Construction of the CREZ project commenced last month, and is currently scheduled to be completed on August 31, 2013. Our results for the first quarter did not include any revenue from this project.

John H. Sottile, Goldfield's President and Chief Executive Officer stated, "The prospects for our electrical construction business are brighter today than at any time in recent history. Our backlog at March 31, 2012 was $70.6 million, up from $6.2 million at March 31st last year." Mr. Sottile also added, "We believe that our recent expansion into Texas and our new CREZ project will provide a good opportunity for further growth in this region."

Analyst Reports

Mon, 07 May 2012 04:00:00 GMT

NEW YORK (TheStreet) -- Goldfield (AMEX:GV) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Comments & Business Outlook

Wed, 28 Mar 2012 04:00:00 GMT

2011 year end results

Revenue for the year ended December 31, 2011 was $32.8 million, substantially unchanged from 2010 despite a significant decrease in the real estate segment.
Net income for the year ended December 31, 2011 was $874,000 or $0.03 per share, compared to a net loss of $253,000 or ($0.01) net loss per share, in the comparable prior year period.
Revenue and operating income for the three months ended December 31, 2011 improved to $11.4 million and $1.7 million, respectively, from $8.7 million and $0.3 million, respectively, in the same quarter last year. This improvement resulted from higher demand for our electrical construction services.
Due to the improved results in our electrical construction segment, the Company's net income for the three months ended December 31, 2011, was $1.6 million or $0.06 per share, compared to net income of $179,000 or $0.01 per share in the comparable prior year quarter.

Electrical Construction Backlog Increase

Since December 31, 2011, the Company's electrical construction backlog sharply increased to approximately $77.8 million at February 27, 2012 from $12.2 million at year end. Approximately $55 million of this backlog is expected to be completed during 2012. This backlog increase was in large part attributable to the Company's expansion during 2011 of its geographical footprint into Texas and establishment of permanent facilities there, with a view to obtaining work associated with the Competitive Renewable Energy Zones ("CREZ") wind generation projects. On February 27, 2012, the Company was selected as prime contractor to build a 110 mile long 345kV transmission line, as part of a CREZ project. The Company estimates revenue of approximately $52.0 million from this project, which is scheduled to be completed by July 31, 2013.

"The Company believes that work from other electric utilities and on other CREZ projects will provide a good opportunity for possible further growth in this region," commented John H. Sottile, president of Goldfield. "The prospects for our electrical construction business are brighter today than at any time in recent history," Mr. Sottile added.