GEO Investing

Goldfield (AMEX:GV) ($1.55) – GV is a leading provider of electrical construction and maintenance services in the energy infrastructure industry throughout much of the United States. The company today reported Q2 2014 results:

  • Revenue was $25.3 million, an increase of 23% from $20.6 million in the same quarter last year.
  • Adjusted diluted EPS was $0.01 vs $0.00 in prior year.
  • Current backlog reached $300 million, almost 6 fold of $56 million in prior year.

Quotes from earnings release,

“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.”

“……Of the $224 million backlog as of June 30, 2014, $34 millions 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.”

“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.


The company only expects $60 million of its backlog to be filled in the next 12 months and and states revenue from assumed exercise of renewal options represents 47% of our total estimated MSA backlog as of June 30, 2014.


GV was once a GeoBargain (GB) and GeoBargain on the radar (GBR).  During its time as a GB and GBR, the stock peaked at 275% and 393% gains from our original codings.  It was the announcement of a large contract win that first brought us into the GV story.   As we stated in our 5/15/2014 email:

“Investors as well as the GeoTeam had hoped that the STEC project would open the door for the company to secure similar size contracts.  Thus far, this has not happened.  Furthermore, management has been unresponsive to questions posed to them by our team.”

We will once again attempt to re-interview management to see if the positive trend in backlog could lead to sustained top and bottom line results.