Goldfield Corp. (NYSE MKT:GV) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 10:00 am ET


Goldfield Corp. (NYSE MKT:GV) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to The Goldfield Corporation Second Quarter 2020 Conference Call.

[Operator Instructions]

I would now like to turn the conference over to Kristine Walczak of Effective Corporate Communications. Thank you. You may begin.

Kristine Walczak

Thank you and good morning, everyone.

I'd like to welcome you to The Goldfield Corporation conference call to discuss the company's second quarter results for 2020, which were reported yesterday.

If you did not receive yesterday's press release, please call me at (312) 898-3072, and we will send you a copy, or go to Goldfield's website where a copy is available under the Investor Relations tab. A replay of today's webcast will be available on the company's website under the Investor Relations tab.

Before we begin, I want to remind you this discussion may contain forward-looking statements within the meaning of the safe harbor provision of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as may, will, expect, anticipate, believe, estimate, plan and continue or similar words. Any forward-looking statements are based upon Goldfield's management's current expectations about future events, and Goldfield assumes no obligation to update any such forward-looking statements, except as required by law. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Accordingly, these forward-looking statements are no guarantee of future performance. These risks and uncertainties are discussed in the company's Form 10-Q for the quarterly period ended June 30, 2020.

Also, certain non-GAAP financial information will be discussed on the call today. A reconciliation of this non-GAAP information to the most comparable GAAP measure is set forth in yesterday's press release, which can be found on the Investors section of the company's website.

With this said, let me turn the call over to our Acting Co-CEO and Chief Financial Officer, Steve Wherry.

Stephen R. Wherry

Thank you, Kristine, and good morning.

We appreciate you joining us and for your continued interest in The Goldfield Corporation. Our CEO, John Sottile, sends his apologies for not being on our call today. As previously disclosed, Mr. Sottile is currently hospitalized and being treated for a non-COVID related respiratory condition. We will not be commenting further on Mr. Sottile's condition at this time. With me today is Jason Spivey, who serves as Acting Co-CEO and President of our wholly owned subsidiary, Power Corporation of America. Jason has more than 30 years' experience in the electrical construction industry.

Demand for our services during the second quarter remained strong amid the extraordinary health and economic environment in which we are operating. Several key metrics we achieved include, successful service line expansion, which is beginning to pay dividends by opening doors to new customers and providing additional projects with existing customers, and contributed to a 19% increase in electrical construction revenue quarter-over-quarter. Improved volume of projects at higher margins, which grew electrical construction margin 420 basis points year-over-year and 340 basis points over the first quarter. Increased MSA project